Industrial Data Communication and IIoT: Digital Technology Contributing to Sweden's Economy

The digital development is progressing rapidly, and transformative times are upon Swedish industry. Technologies for sharing information between different control systems play a significant role in this. It involves industrial data communication and the Industrial Internet of Things (IIoT) – the very backbone of the fourth industrial revolution, Industry 4.0.

Industrial Data Communication Enables Industry 4.0

Industry 4.0, also known as the fourth industrial revolution, signifies a comprehensive digitization of the manufacturing industry through the integration of technologies such as the Internet of Things (IoT), artificial intelligence (AI), cloud services, and advanced data analytics.

Industrial data communication is the hub that enables information to be shared between various production machines, sensors, and control systems. Unlike traditional, isolated systems, modern data communication allows machines to collaborate within a unified system. It also involves IIoT – networks of intelligent, connected machines that gather data in real-time.

An example of how this can work is sensors in production lines that continuously send status updates for instant analysis and decision-making. The immediate response to such conveyed data allows production to be adjusted and optimized automatically. This not only leads to higher efficiency but also provides the opportunity to detect anomalies immediately, long before they become critical.

Technology Requiring Stable Network Infrastructures

One can simplify and say that industrial data communication and IIoT blur the previous boundaries between physical machines and digital systems. However, for this to work, stable and secure network infrastructures are required. This is also a rapidly growing area, with a range of solutions tailored to the specific requirements of the industry, such as:

• Industrial Secure Routers
• Industrial Ethernet Switches
• EN 50155 / IEC 61850-3 Ethernet Switches
• Industrial Wireless LAN
• Industrial Cellular Routers/Gateways/Modems
• Industrial Network Management Software

Through this type of products, such as those provided by Moxa, stability, speed, and security in all data communication are achieved. These factors are of utmost importance for IIoT solutions to function optimally.

Improved Efficiency and Productivity

Efficiency is the foundation for all companies that want to maintain their position. Within the industry, this increasingly relies on IIoT and industrial data communication. Thanks to the ability for real-time analysis, production can be proactively controlled and adjusted while it is ongoing, rather than reacting to problems that have already arisen.

The digitization of production management significantly reduces resource waste. Automated processes replace routine tasks, freeing up staff time for work that requires human expertise. The result is clear – productivity and capacity increase without the need for significant investments in additional physical resources.

Predictive Maintenance and Reduced Downtime

By continuously collecting and analyzing data from various machines, expensive and disruptive downtimes can be avoided, allowing maintenance to be performed when it is actually needed, based on detected wear. This means fewer unplanned production interruptions and drastically reduced maintenance costs.

Since machines are no longer overused or maintained unnecessarily, their lifespan is also extended. Moreover, companies gain full control over their production planning, as they avoid the logistical problems that unexpected downtimes inevitably lead to.

Quality Improvement and Adaptability

The flexibility enabled by digital analysis and control also makes it easier to adjust production based on changing customer needs. Instead of lengthy and costly production adjustments, factories can easily switch between different products or variants. This means they can quickly and smoothly adapt to market demand.

As a result, companies can both retain and attract new customers – as they can constantly offer exactly what customers demand, at just the right time. This not only leads to more satisfied customers but also to a stronger competitive position in the global market.

Contribution to Sweden's GDP

Sweden's economy heavily relies on the manufacturing industry, which accounts for nearly one-fifth of the total value added in the business sector. As more companies in this sector achieve increased efficiency through digitization and IIoT, productivity also improves significantly. This, in turn, leads to increased profitability – boosting Sweden's economy as a whole.

More efficient production systems also strengthen our international competitiveness and create room for increased export revenues. All of this leads to direct, positive effects on Sweden's GDP. This is because increased production and better resource utilization provide higher economic value. The increased digitization within the industry thus serves not only as an internal tool for the companies in question but also as a driving force for our national economy.

Collaboration and Opportunities

For the new digital technology to truly take off and benefit the entire industry, close collaborations between companies, academia, and public institutions are needed. By sharing knowledge and experiences, both small and large players can more quickly adopt new solutions.

Academic institutions contribute research that can be directly applied in practice, and authorities provide financial support for various initiatives. This creates the best conditions for the industry as a whole to become more competitive on the international stage.

The Advanced Digitalization program is a concrete example of how collaboration between the state and industry can drive technological development. With over four billion kronor in joint funding from 2023 to 2027, from both public and private actors, the goal is clear: to develop advanced digital solutions that strengthen the competitiveness of Swedish industry.